Minnesota Senate Bill SF3335

Minnesota 2023-2024 Regular Session

• Introduced: 5/15/23
• Refer: 5/15/23

Caption

Creating a family and medical benefit insurance plan, providing a marketplace for wage replacement insurance benefits and appropriating money

Impact

The MN FaMLI program outlines a framework for employees to receive up to 67% of their average weekly wage, capped at the FICA taxable wage maximum, for up to 12 weeks of leave annually. The legislation establishes a premium fund for managing insurance premiums and mandates that all permanent state employees receive this coverage without cost. This initiative is expected to leverage the state's purchasing power to facilitate affordable insurance options for all employers, especially smaller businesses that might struggle with self-insured plans.

Summary

SF3335 aims to establish the Minnesota Family and Medical Leave Insurance (MN FaMLI) program. This legislation proposes to create a voluntary marketplace for family and medical leave insurance that provides wage replacement benefits to eligible employees during medical events such as childbirth or care for a family member with a serious health condition. The program is designed to benefit both public and private sector employees, ensuring they have access to necessary leave without financial strain.

Contention

Among the points of contention surrounding SF3335 is the debate over the voluntary nature of the plan and employer participation. While the bill allows non-state employers to participate voluntarily, some lawmakers express concern about the implications this would have on workforce consistency and employee access to benefits. Proponents highlight that encouraging voluntary participation can create a more supportive workplace environment, while opponents argue it may lead to discrepancies in employee benefits depending on employer choices. Additionally, the proposed tax incentives for small employers raise questions about the long-term sustainability of the fund and the implications for state finances.